- S&P 500 and Nasdaq closed higher on Thursday as U.S. Fed Chair Powell continued to beat a hawkish drum and suggested the central bank has not reached the end of its tightening cycle, but provided reassurance that the Fed would proceed with caution.
- Powell, appearing before the Senate Banking Committee for his semi-annual monetary policy testimony reiterated his view that more interest rate hikes are likely in the months ahead, a sentiment echoed by Fed Governor Michelle Bowman earlier in the session.
- Investors were taken by surprise when the Bank of England implemented a larger-than-expected 50 basis point rate hike to tackle Britain’s stubborn inflation, further evidence that hot price growth remains a global economic headwind.
- Asian stocks headed for their worst week in three months on Friday as a string of hotter-than-expected inflation prints and hawkish central bank surprises made investors nervous about the economic toll of taming runaway prices. Hang Seng index slumped 373 points and Nikkei 225 index slid 662 points.
- Japan’s business activity expanded at a slower rate in June, according to flash estimates by the au Jibun bank. The composite purchasing managers index fell to 52.3 in June, compared to 54.3 in May.
Dow Jones Index
(CFD Symbol: US30)
Price is currently testing the 20EMA support and there is higher chance that price may breakdown this support. Both Stochastic and MACD are falling down. We are likely to see price falling to 33,260 if it violates 33,800.
Sell 33,880 for 33,270 with a stop above 34,000. Entry was filled on 23 June.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation: Short @ 19,270
Target price: 18,200
Protective stop: 19,400
Price broke and closed below the rectangle zone four days ago. It moved below the falling 20EMA as well. We are likely to see price testing its previous low at 18,012 again. Stochastic is falling and MACD has turned bearish.
Sell 19,270 for 18,200 with a stop above 19,400. Entry was filled on 21 June.
Nasdaq 100 Index
(CFD Symbol: USTec)
Price created a price high at 15,282 on 16 June. It is likely to test the 20EMA support at 14,690 today. A violation of the 20EMA will hint for a change in trend and a deeper correction. Stochastic is falling and MACD has a bearish crossover.
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Recommendation: Long @ 7636
Target price: 7780
Protective stop: 7450 filled
Price managed to stay above its previous low support zone for a fourth occasions. It has to break though the 20EMA resistance of 7607 for more upside. Stochastic is neutral. MACD is rising after having a bullish crossover.
Buy 7636 for 7780 with a stop below 7450. Entry was filled on 16 June. Stop order was filled on 22 June.